If Annual Demand Is 12,000 Units, the Ordering Cost Is

question 90

Multiple Choice

If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of the following is the optimal order quantity using the fixed-order-quantity model?

• A) 576
• B) 240
• C) 120.4
• D) 60.56
• E) 56.03

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Definitions:

Contagion Theory

A theory in social psychology that suggests ideas, attitudes, and emotions spread through a population like a contagious disease, influencing group behavior.

Convergence Theory

A theory suggesting that as societies develop, they begin to resemble each other more by adopting similar technologies and social structures.

Social Change

The significant alteration of social structures and cultural patterns over time, impacting institutions, behaviors, and societal norms.

New Social Movement Theory

An analytical framework focusing on the diverse social movements that emerged from the 1960s onwards, emphasizing identity, agency, and culture.